Hello! I am a new investor in Austin, Texas, with an occupied condo in California. I currently work as a field sales rep and would like to keep my personal income separate from the income I make on my rental. My condo is currently worth $300k (I bought it for $200k two years ago and now owe $132k). It rents for $1600/mo with $1370/mo expenses, profiting $230/mo.
How do I start from here to build a portfolio of properties? How can I leverage the condo as a separate enterprise to invest in more real estate? Should I take an equity line and reinvest that way?
Sounds like you're off to a great start.
You can pledge the equity in your condo as collateral for your next property.
Or, you could use that equity to secure a line of credit, and use cash from the line to make offers to motivated sellers.
You might go hunting for a deal and see if you can get an offer accepted with a 30 day financing contingency. Then use that time to determine the best way to finance the deal. If you have equity in a property and a good banker, there are a number of ways the deal could work.
TAKE AN EQUITY LINE AND JONATHAN SUGGESTION IS GOOD TOO THE ONLY DOWNSIDE IS THAT NEXT PURCHASE IF YOU'RE LOOKING FOR A GOOD RATE TO KEEP PYMTS DOWN THE CONVENTIONAL LENDER WILL NOT ALLOW YOU TO BORROW MONEY TO PURCHASE ANOTHER HOUSE AND EXPECT A GOOD RATE. IF YOU DON'T CARE ABOUT YOUR RATE THEN I KNOW WE CAN DO AS A SUBPRIME OR HARD MONEY.
WE DO THIS TO SOME OF OUR INVESTOR WE HANDLE THEIR REAL ESTATE AND THEIR MORTGAGE LOANS AND TO THE NEW INVESTMENT. ONE STOP SHOP
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